17. Bankers/Developers/Housing Advocates: Partnering to ...
Transcript of 17. Bankers/Developers/Housing Advocates: Partnering to ...
Bankers/Developers/Housing Advocates: Partnering to Create
Housing Opportunities
Macy Kisilinsky, PNC Bank
Elly Fisher, Oakland Planning and
Development Corp. (OPDC)
Evolving Relationship Business Banking: • Checking, savings, line of credit and some mortgages • Strong relationship with business banker and local
branch manager Neighborhood Partnership Program: • 6 year funding commitment in exchange for tax credits • Supported community development services from
organizing to workforce development • Formed a deep long-term relationship • Community Development representative on our board
Evolving Relationship (continued)
Housing Development Application: • Support letter for Low Income Housing Tax
Credit application • Ongoing support and advice to prepare for
award
Why the Relationship Worked
OPDC: • PNC was dependable, offered products/services
that they needed and shared their interest in developing a longer term relationship
PNC: • OPDC had a track record, they were well
established and experienced • Demonstrated mission driven results, with
staying power
Keys to Success
PNC: • Navigating the bank organization - finding the right
person at the bank to fill your needs • For a large bank like PNC that may involve getting
to know several people. For smaller banks it may be one person
OPDC: • Start with the Community Development Department,
introduce yourself and your organization, articulate your needs, look for other possible connections
Andy Haines, S&A Homes
Becky Yago, Dollar Bank
Federal Hill
Project details: • Pittsburgh, PA • Build and sale period-2009-2012 • 44 homes constructed and sold • Price Range- $145,000 to $380,000 • Homes are reselling at 50% appreciation on average • Built by S & A Homes and Central Northside
Neighborhood Council
Federal Hill
Financing Sources: • PHFA Homeownership Choice Program • Urban Redevelopment Authority • PHFA & Dollar Bank Construction Loans
Before
After
After
After
Why the Relationship Worked
S&A Homes: • Dollar understood the nuances of their deal. Four
funding sources, two were grant sources, bank needed to understand how they all work together
• Dollar had knowledge of the neighborhood and the challenges involved
Why the Relationship Worked
Dollar Bank: • Expertise and experience of S&A Homes and
their development team – particularly as it relates to construction process. This is where everything happens
• Key underwriting concern – would the market absorb the units planned? Dollar, like the mixed income aspects
• If the deal runs into an obstacle, how are the interests of the bank protected? Gets back to the strength of the development team
Keys to Success • Understand and be comfortable with the typical multi-
layered financing involved in affordable housing development. Be aware of the different parameters for each source of financing, understand the impact of scale and complexity of the project
• Be prepared to “roll with the punches” expect the unexpected. Both partners
• CRA is a consideration but not always the key driver for banks, track record of the development team is often more important
• Communication among partners. Don’t over react, but don’t under react either. Situations sometimes change quickly particularly during construction, is the relationship nimble enough to react effectively?
Mollie Phukan, Wells Fargo Home Mortgage
William Hall, Clarifi
Foreclosure Prevention Efforts Details of the relationship: • Foreclosure Client pipeline management -
specialized team created to help agency manage loss mitigation process
• Foreclosure Prevention Events – – large scale Wells Fargo sponsored events with non-
profit participation – small scale co-branded events
• Atlantic City Casino Closings – partnership on efforts to connect those impacted by casino closings with valuable community resources.
Why the Relationship Works
Clarifi: • Both sides aligning business goals • Shared mutual interest
Wells Fargo: • Agency leadership open to approaching the
partnership in different ways as industry and markets change
• Valuable perspective on market nuances
Keys to Success
Clarifi: • Non-profit organizations should put their best
foot forward when engaging with banks, start by doing your homework
• The approach should be relational not transactional. Be clear about what each brings to the table and the roles each will play in the relationship
Keys to Success
Wells Fargo: • Defining common goals and building the
relationship through those goals • Feedback and communication • Quality and dependability make for a strong
relationship